Do you want to buy a home but don’t think you can afford it? You might be surprised at how much you could qualify for with an increased Home Loan eligibility. With the right tips and strategies, you could unlock more financial freedom when purchasing your dream house. In this article, we’ll share six tactical ways to maximise your Housing Loan eligibility so you can get approved for the amount that meets or exceeds your expectations!
Tips to increase your Home Loan eligibility quickly
Securing a Home Loan is an essential step in buying a house. However, with stringent requirements in place to determine applicants’ eligibility for approval, it can be difficult for some borrowers to qualify for a loan.
Below are the tips and tricks to increase Home Loan eligibility to improve your chances of getting approved.
- Settle your existing Debts:
One of the quickest ways to increase your eligibility for a Home Loan is to pay off any existing debts. This can be done by paying off credit card balances, personal loans, or other debt obligations. Doing this will show lenders that you can repay your debt and will be more likely to approve your application for a Home Loan. You will also improve your credit score in the process, which can further improve your chances of getting approved for a Housing Loan.
- Maintain a Good Credit Score:
A good credit score is essential to get approved for various Home Loans. If you need a better credit score, take steps to improve it. Pay your bills on time, keep your debt levels low, and monitor your credit report regularly to ensure accuracy.
- Make use of joint loans:
Taking out a joint loan with other borrowers, such as a spouse or family member, can significantly increase your Housing Loan eligibility. Joint loans are also advantageous because they may help you borrow more and qualify for better rates due to the higher combined income of all parties involved. Check each lender’s requirements before taking out a joint loan, as some lenders do not accept them.
- Opt for a long-term loan:
When you apply for a Home Loan, the lender will determine your repayment capacity. A long-term loan tenure indicates that you are in a better position to repay the loan. A longer tenure also reduces your EMI amount, making it easier for you to manage the monthly outgoings.
- Mention Additional Income Sources:
Did you know that you can increase your Home Loan eligibility quickly by mentioning additional sources of income? If you have a steady second source of income, such as rental income or profit from investments, make sure to mention it when applying for the loan. This will help increase your eligible amount and reduce your monthly repayment burden. The lender will also consider additional sources of income when calculating the loan amount you can borrow.
- Consider Step-up Home Loans:
A step-up Home Loan is a type that allows you to increase your eligibility over time. This type of loan enables borrowers to access more significant amounts of money than they would generally be able to qualify for, typically through gradually increasing the size of the monthly installment or by adding a repayment amount on top of the current one.
Step-up Home Loans are particularly beneficial for those who may have been unable to qualify for a large loan due to their income or creditworthiness. By gradually increasing the loan repayments over time, borrowers can improve their chances of being approved for larger loans.
The tips and tricks mentioned above can help you increase your eligibility for a Housing Loan. By following the strategies, you’ll be able to secure a Home Loan more quickly and start building your dream home. A Housing Loan can also help you build a better credit score, provided that you make your payments on time and keep your debt levels low.
